AI startup Kata.ai raised Series A $3.5 million

Kata.ai raised Series A funding of Rp46.5 billion (US$3.5 million). The startup artificial intelligence (AI) headquartered in Jakarta on Wednesday announced that it has received the first funding from Taiwan's Trans-Pacific Technology Fund (TPTF), followed by Telkom Group's MDI Ventures, South Korea's Access Ventures and Convergence Ventures.

Tinuku AI startup Kata.ai raised Series A $3.5 million

Funding for Kata.ai also involves VPG Asia, Red Sails Investment, and angel investor Eddy Chan. One of the agreements is that Barry Lee as TPTF leader will also join the board of directors of Kata.ai. The funds will be used for research, development, expansion of supply and market expansion into Southeast Asia and Taiwan.

"We are very pleased to invest in Kata.ai. AI applications have great potential in Indonesia's rapid economic growth," said Barry Lee.

"Technological flexibility by Kata.ai to adopt a new language also enables rapid expansion into different countries. The international network and TPTF technology capabilities will expand Kata.ai's business outside of Indonesia," Lee said.

Kata.ai has been known as YesBoss which then build Natural Language Processing (NLP) technology for the mission of equipping Indonesian consumers with virtual assistants in mobile phones. Now YesBoss transforms the image into AI startup known today as Kata.ai.

They apply AI technology in chatbots for companies if they have questions or concerns about the product or service. Recently Kata.ai partnered with Unilever to create a chatbot on LINE named Jemma as a virtual assistant serving customers on behalf of Unilever.

This Chatbot has significantly improved user engagement and Jemma managed to make friends with over 1.4 million LINE users in an average chat session lasting about 4 minutes. One of the longest chat sessions lasts for 2 hours.

Kata.ai also partnered with Accenture to build a chatbot named Veronika for Telkomsel as an AI-based virtual assistant designed to help users top up pulse, purchase data packets, arrange appointments with nearby GraPari services, and more.

Chatbot by Kata.ai has 6 million people in just 8 months. Startups also managed to penetrate other service sectors, including telecommunications, banking, consulting, and retail. The new fund will also be used to establish a subsidiary in Taiwan and collaborate with other technology startups to serve the local market.

"We believe Indonesia and Southeast Asia as a whole is an ideal market for chatbots, the region is more promising than any other country around the world," said CEO Kata.ai, Irzan Raditya.

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